SHAREHOLDER

UPDATE

Ted Pretty - CEO & Managing Director

Wednesday 5 April 2017For

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Disclaimer - Forward-looking statements

DISCLAIMER: The information may not be reproduced or distributed to any third party or published in whole or in part for any purpose. The information contained in these materials or discussed at the presentation is not intended to be an offer for subscription, invitation or recommendation with respect to shares or securities in any jurisdiction. No representation or warranty, express or implied, is made in relation to the accuracy or completeness of the information contained in this document or opinions expressed in the course of this presentation. Some data provided by third parties has been incorporated into these materials and no warranty or representation is made in relation to the accuracy or completeness of that information. The information contained in this presentation is subject to change without notification.

This presentation contains forward-looking statements which can be identified by the use of words such as “may”, “should”, “will”, “expect”, “anticipate”, “believe”, “estimate”, “estimated”, “intend”, “pipeline”, “scheduled” or “continue” or similar expressions. Any forward-looking statements or intended strategies contained in this presentation are subject to significant risks, uncertainties, assumptions, contingencies and other factors (many of which are outside the control of, and unknown to, COVATA Limited (“CVT”) and its officers, employees, agents or associates). Such factors may cause a change in strategy or cause the actual results or performance to be materially different from any future result anticipated, expressed or implied by such forward looking statements. There can be no assurance or guarantee that strategies pursued by the company or actual outcomes will not differ materially from these statements.

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Executive summary

BusinessCosts cut,

cash to FY19Leaner and

focusedLooking for

growth

Market Demand is strong

Cyber is growing

Focus on sales

IP & Product

Solid IP Validation

Use Agile to address tech

debt

New products

and services

... there are good reasons to be upbeat

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Who we are and what we do

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Covata has an experienced leadership team

BILL MCCLUGGAGEChairman

DAVID IRVINENon-Executive Director

LINDSAY TANNERNon-Executive Director

AdvisoryTRENT TELFORDPHILLIP DUNKELBERGER

TED PRETTYCEO & Managing Director

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The Company has valuable IP and a solid base

• Established 2007

• Listed November 2014

• Ticker symbol - ASX:CVT

• Shares on issue - 518,895,233

• Share price* - 4.2c

• Market cap* - A$21.79m

CORPORATE OPERATING

• Market validation

• 19 instances of Safe Share

• 4 enterprise customers

• 15 government customers

• 1,095 originators and 2,481 collaborators * *

INTELLECTUAL PROPERTY

• Patents on Secure Data Object generation and management

• Mature Safe Share product• Innovative Alpha release of

Delta • Team of dedicated and

experienced employees

IP

*As at market open 4 April 2017 **As at 31 March 2017

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We provide data-centric security solutions

PROTECT COLLABORATE CONTROL

Our solutions ensure security and privacy is not an afterthought, by protecting sensitive information at a data-level from the start, and at every point of its

journey

Our solutions enable and encourage efficient and

trusted collaboration without constraint across internal and external stakeholders, devices,

networks and geographic regions, ensuring sensitive information is safely shared

Our solutions give you control of your sensitive

information, allowing effective risk management

of external threats and aiding compliance with legislative requirementsF

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Our flagship product Safe Share protects data

One key per file with on-device encryption

POLICYIDENTITY

KEY MANAGEMENT

Real-time control of data

Right access to the right people

APIS & SDKS

EmbedSecurity

Delta offers KMaaS*

*Key Management as a Service

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Our security certifications include

FIPS 140-2 LVL,DESIGN ASSURANCE LVL 3

• Certifies highest level of protection, US and Canada

FIPS 197 ADVANCED ENCRYPTION STD 256

• Sufficient to protect classified information in US Government

ISO 27001• ISO/IEC 27001 is the best known standard for an information security

management system (ISMS)

G-CLOUD 8• G-Cloud is UK public sector Digital Marketplace to procure pre-approved

SaaS services

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Safe Share has an established footprint

UK/EUROPE

AUSTRALIA

21

3

Sydney

London

Partners

Clients

# Employees

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Covata deploys across varying environments

On-PremisesHosted in-house

CloudHosted by a trusted provider

HybridStore keys behind a protected firewall and your encrypted data in the cloud

1

3

2

• Customers use three different Safe Share deployment models

Cloud expected to grow at

highest rate

Source: Markets and Markets: Cyber Security Market – Global Forecast to 2021

Cyber security market size by deployment mode (USD billion) *

*Compound Annual Growth Rate | (e) estimated | (p) projected

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The market is growing fast

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• Shortage of cyber security talent

• Lack of awareness about advanced cyber threats

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The drivers and opportunities are compelling

MARKET DRIVERS

• Rise in security breaches• Stringent compliance

and regulatory requirements – SOX, GDPR

• Data sovereignty• Rise in multi cloud-

based solutions• Emergence of risk-based

frameworks for cyber security

ELECTRONIC FILE SYNC & SHARE

MARKET RESTRAINTS

• High cost of internal innovation

• Budget constraints

INDUSTRY TRENDS MARKET OPPORTUNITIES

• Growing market for secure applications and platforms

• Rise in demand for data centric security solutions

• Leveraging big data analytics for cyber security

Source: Markets and Markets: Cyber Security Market – Global Forecast to 2021

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Serious data breaches are on the rise

Cyber crime drives cyber

security spending

Cybercrime will cost $6tr annually by 2021

4,149 confirmed breaches exposed

4.2b records in 2016

GDPR-related security software $811m in 2016, to $1.8b by 2019. GDPR-related storage software $258m in 2016, to $1.7b by 2019

Source: Risk Based Security: ‘Data Breach Quickview Report’Source: IDC: EU Data Protection will drive growth in

European Security and Storage Markets

Privacy in enterprise

is a growing concern

Cost of security breaches to rise

All dollar values in USD unless otherwise stated

Source: Markets and Markets: Cyber Security Market –Global Forecast to 2021

Neiman Marcus data breach settlement tells us plenty

about the ROI of security (2017) - Computer World

There is a security ROI dance in retail today.

McDonald’s Canada says info of 95,000 job

applicants compromised

Canadian Underwriter (2017)

McDonald’s Canada says the jobs section of its

website has been hacked, compromising the personal

information of about 95,000 applicants over the last

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And cyber security is growing

Source: Markets and Markets: Cyber Security Market – Global Forecast to 2021

Global cyber

security market

2016 - $122b

2021 - $202b

CAGR 10.6%

$36.49b –$39.67b

(2016-2021)

$21.87b –$45.02b

(2016-2021)

All dollar values in USD unless otherwise stated

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It’s also growing in Covata’s target markets

Banking, Financial Services & Insurance vertical expected to grow at the highest CAGR during the forecast period

By solution, Encryption is expected to grow at the highest CAGR during the forecast period

Source: Markets and Markets: Cyber Security Market – Global Forecast to 2021

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Although it’s a competitive market …

… Covata has a strong footprint

DATA LOSS PROTECTION

ELECTRONIC FILE SYNC & SHARE

KEY MANAGEMENT / PROTECTION

COLLABORATION

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And Covata is well-placed

Covata’s focus

Figure 1: Gartner Report: Hype Cycle for Data Security (July 2016)

Sec. aaS

KMaaS

Data

Bockchain

DLP

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We have pressed the reset button

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CASH

We are focused on improving the business

PLATFORM & PRODUCT

MARKETING & CHANNELS

SALES PIPELINERESOURCES

✓ $9m at bank (end Feb 2017)

✓ No debt✓ Cash extended to

Q2FY19

✓ Proven product with customer validation

✓ Strong development

Cu

rre

nt

• Address technical debt• Move to rolling 5-

quarter product roadmap utilising Agile development methodology

Focu

s

✓ Existing structure in place

• Rebuild channel support• Better targeting

✓ Solid core team with good experience

• Dedicated product management

• Build additional sales team capability

Poor track record of sales

• Reset pricing model• Requalify and rebuild

sales pipeline • Expand to enterprise

market, specifically, Banking, Financial Services & Insurance

• Manage cash• FY18 build revenue

Technical debt

Poor channel support Limited productmanagement

Minimal revenue from Barmer

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After our ‘reset’ we are leaner and more focused

QUARTERLY BURN (PAYROLL & NON-PAYROLL COSTS)

• Extended cash runway into Q2 FY19*• Focus on rebuilding revenues• Estimated closing cash for March qtr approx. $7.7m (as at 31

March 2017)**, cash outflow for March estimated $3.4m**

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Sep 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017

Am

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EMPLOYEE HEADCOUNT

Jan 2017 Apr 2017

* Assumes zero revenues** Cash after restructuring charges - pending 4C finalisation

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Now we are pursuing 3 steps to growth

Reset the base

Define and develop next-generation solutions

Grow

February - March 17 April - July 17 August 17 - July 18

Leaner structure

Focused team

Address technical debt

New channels Connectors,

integrations

Stronger sales focus

Quarter-by-quarter product releases

Open new markets Complementary

acquisitions

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We are expanding our product and services roadmap

Services LayerAutomated| Self-Service | Managed

Content

Identity and

Access

Key Services

eDiscovery and Data Mapping

Event Tracking

Audit

Big Data and

Analytics

Secure Archival

and Deletion

Covata Capability

Services

Product

Platform

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And rethinking the business and revenue model

Services

Platform

▪ Managed services▪ Consult (Breach,

GDPR, PCI)

▪ On-prem/Hybrid▪ SaaS

▪ OEM▪ Freemium

Product

Annuity

Licensing

Subscription

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Near-term segments are enterprise and government

GOVERNMENT

ENTERPRISE

SPECIALGOVERNMENT

Government use includes:▪ Cabinet level agencies requiring high assurance data

security ▪ Community service departments ▪ Specialists agencies

Special Government use includes:▪ Defense▪ Aerospace▪ Intelligence

Targeting Banking, Financial Services & Insurance: ▪ Customer data sharing, property data▪ Transaction integrity - PCI DSS▪ Regulatory compliance

Health also a potential market - HIPAA

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We have genuine pipeline opportunities

AUSTRALIA UK/NORTHERN IRELAND EUROPE

Direct

✓ Trial use of Safe Share in sensitive data exchange between banks

Indirect

✓ Safe Share (Macquarie Telecom branded SigBox) use by 15 Australian Government agencies expanding

✓ Approaches made to new channels to market

Direct

✓ Continued pre-sales activity with 5 key UK government agencies

✓ Negotiating to implement multi-agency instance at Tier 2 security level

✓ Northern Ireland Government discussions progressing well

✓ Prime Tenderer bid still underway but competitive

✓ New targets in pipeline

Indirect

✓ Reactivated discussions with T-Systems on German market given GDPR privacy rules

✓ Additional licences sold to Messe Berlin

Our focus must be on execution F

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In summary …

BusinessCosts cut,

cash to FY19Leaner and

focusedLooking for

growth

Market Demand is strong

Cyber is growing

Focus on sales

IP & Product

Solid IP Validation

Use Agile to address tech

debt

New products

and services

... there are good reasons to be upbeat

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Questions?

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Thank you

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Appendix

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Shareholder calendar

Date Item

February 2017 Half results

April 2017 EGMAppendix 4C (Jan-Mar)

July 2017 Appendix 4C (Apr-Jun)

August 2017 Full year financial results

October 2017 Appendix 4C (Jul-Sep)

November 2017 AGM

January 2018 Appendix 4C (Oct-Dec)

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CONTACTS

Ted PrettyCEO & Managing Directorted.pretty@covata.com

Dana DanieliVP Marketing, Communications & Investor Relations+61 (0)400 993 305dana.danieli@covata.com

Sydney, AustraliaLevel 4152-156 Clarence StreetSydney NSW 2000Phone: +61 (0)2 8412 8200

London, United Kingdom3rd Floor, West Building1 London BridgeLondon SE1 9BGPhone: +44 (0) 207 901 1293

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